After 6+ months of working from home, companies have learned for themselves that they can have remote employees and be successful. Not surprisingly, more than 60% of hiring managers say their workforce will become more remote in the future (The future of remote work, Upwork, June 2020). In some cases, they are supporting employees who decide to relocate outside the company’s home state. In others, they are hiring employees where they can find them, even if they are out of state. One survey showed that doing so can reduce by up to ⅓ the amount of time it takes to hire new employees (2020 State of Remote Work, Owl Labs, August 2020).
Moving into a new state — even if it’s just having employees in that state — creates a raft of new compliance requirements. The specifics will vary from state to state, and may include business registration, licensing, tax registration and new hire reporting. Usually, the first step is qualifying to do business in the state by filing an application with the state Secretary of State’s office. Not only are there penalties in failing to file with the state Secretary of State, but it can be impossible to set up other state agency accounts without the ID number provided by the Secretary of State’s office.
Once a company is qualified to do business in a state, the work has just started. Many states require an initial report to be filed, followed by a regular annual report. With some exceptions, the deadlines for these reports are tied to the qualification date. Thus, the more states with employees, the more state reporting deadlines companies need to track. The information required in each state report is largely the same but there are idiosyncrasies from state to state.
So who does this work? Some companies have their lawyers or accountants do these filings but the hourly charges can add up quickly. For those who do the work in house, they need to determine the particular requirements for filing in each of the states, gather the necessary documentation (which often includes retrieving documents from the company’s state of formation), submit the application before the employee’s start date and then track the due date for the annual report.
SingleFile can help. We know the requirements for each state and can readily pull supporting documents from a company’s home jurisdiction. We’ll get the filing done quickly and correctly. We track all of your annual reporting deadlines and file the reports for you. Contact us to let us help you.